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lowery research. jordan, your first. 30 seconds. go for it. >> it seems like the chances of new highs in the s&p in the days ahead appears very likely. largely because the strength of the market at this point, it's showing a lot of participation in this advance. the only concern we have at this point is that over in europe, there's a large amount of selling that's occurring and that that risk which is appearing in a lot of the banks spills over in the u.s. >> thank you very much. michael, how about you? all time high tomorrow? >> great to see you, sue. all time high tomorrow. we're going to grind higher. we're looking at 10:30 a.m. tomorrow. there was a drawn inventory unexpectedly last week. we're seeing broad based economic recovery. you're seeing cyclicals, transports, year to date. it's go to continue to grind higher, and we're looking forward to it. >> looking fine, guys. appreciate it very much. >> energy has been a leader in this market. that is the point to keep an eye out for tomorrow morning. as it stands, the dow and all

time high territory. we closed at a new high today. at 14,559, the nasdaq not even close. the s&p we'll keep an eye on tomorrow. it finished up 12 points today at $1,563.77. the old all time high $1,565.18. >> you hang on to that iou. >> i promise i'll make good on it. >> that's it for us. >> "fast money" starts right now. we'll see you tomorrow. at the nasdaq market site in times square, i'm melissa lee. running with the bulls, the s&p 500 inching ever closer to a new record, and the traders are sharing the best ideas to trade the highs and still find value. kraft foundation, are we setting up for another housing bubble? another guest says another drop in home prices is lurking in the shadows. and diamond in the rough. why this year's trash stock could be treasure for your

portfolio. the analyst who's making a bold, bullish call joins us with his take. first straight to our top story. that is, of course, the s&p closing less than two points from an all time high today. how much steam is left in this rally? tony o'dwyer raising his forecast for the s&p 500 to 1760. that is a drastic rally from where we are now, and the it the highest forecast on the street. we ask our traders, fast or fiction? will this rally take us to 1,760 before the year is out? pete najarrian, what do you say? >> i'm not sure how we get there? the rallies are the backbone. obviously, you go defensive, you can see the pharmaceuticals. they hit another high today in the xlv. i'm not sure how we get to that level. i do remain bullish. i think we go to the upside, something north of 1,600. but to get to the 1,700 number,

i don't see it right now. >> we need materials. a lot of market strategists point to copper compared to the s&p 500 and how it's been diverging. >> typically, we sell in may. last may, if we remember, the markets dropped 5.5%. i would be very wary here in the near term given the most recent run-up. i'm going to say fiction. >> i think for tony's call to work out, you've got single digit earnings growth. the question is how much room is there for multiple expansion? how much more positive will we get on whatever the earnings are going to be? that's a tough thing seasonally as anthony points out right at this moment, saying it's a little bit too early to say whether or not that's realistic. the lynchpin of tony's call is that systemic risk seems to have faded. here's the thing about systemic risk. it rears its ugly head, often without warning. it's a lynchpin. >> using the multiple to get to

17. >> 16 times s&p 500 operating earnings $110 a share. and he also says, by the way, we could see a pullback down to 1,500, which could be a great entry point. imagine going from 1,500 to 1,760. we saw the move there. fast or fiction? >> fiction. >> all right. >> fiction for all the reasons these guys said and for another reason. as josh just said, it rears its ugly head when we least expect it. vix down to 12. all those things have happened. we haven't seen the selloff yesterday. after today's action, throw away that book mark. the market is doing a slow and steady grind until it doesn't. i think that's where we're headed. 1760 is a bit of a pipe dream. we had tony on the other day. i said, tony, sounds bullish, you should raise the forecast. now he does it. >> see from your nagging him. >> one thing to add in tony's

favor, every single bull market since world war ii has ended at at least a 17 or 18 multiple. so there is a good likelihood we eventually get there, just not sure it happens in 2013. >> let's get to the top trades. pete najarian, what was your top trade? >> my top trade stays in the energy space. obviously today, a little brit less participation. but take a look at some of these pipeline plays, when you look at oks, one of the 2345i7names hit time and time again. whether it's the refineries going into the service sector, we've seen every sector in that space moving to the upside. energy is one of those sectors moving to the upside. i think some of those reasons make a lot of sense when you look at the pipeline plays, huge dividend yields, valuations that still seem reasonable at this point in the game. i think this is one of those names that actually got a lot more to the upside.

we had may 60 call in yesterday. >> guy, you're going health care. >> we've been health care for a while. we talked about tenet health care before they reverse split. people said there's no way they could survive post, post split, and we disagreed. up 2% today. the momentum's cleared behind it. short term the stock is going to continue to go higher. valuation may be getting a little rich, ybut i think the stock continues to push north. >> anthony, your top trade today? >> i like philip morris, 3.7% dividend yield, huge share repurchases coming. the only negative is it's a 17, 18 multiple. so it's ahead of the market there slightly. i think this stock has a ways to go through $100, and this is a classic large gaap international growth story. >> also ahead of itself on a historical valuation metric? >> slightly, but because of where the dividend is, melissa, that's why i like it so much.

3.7% dividend yield with share repurchase in this environment. we'll be long on that. we'll take it. >> josh brown, top trade? >> i like pfizer. i've been very bullish. another multiyear high in the health sector. this is a name gaining within that sector. i think $30 and higher is literally around the corner. i can't imagine any other pharma name i'd rather be in right now. >> the s&p 500 may be less than two points away, i should say fewer than two points away from its record close. alison dean is sounding the alarm on this rally. she has more than 25 years of investment management. >> alison started at age i just want to make sure. age 1. go ahead, alison. >> you say there's some headwinds that could be facing us. i feel like so many strategists come on and say there's head winds. i started my career around the '87 crash, and so many people

were out of the market crash, and so many was chase rallies. post-2000, i'm seeing almost the same behavior post-'87. it's not as bad as people thought. people are getting into the market. i think they're panicking in to some degree. >> when you say pause, what kind of pause are we talking about? a 10% pause? >> i think 5% or 10%. maybe a lot of volatility through the spring and um isssu. >> the way you're positioned, you're recommending small caps, regional banks. these are sectors when the market is rallying, not when it's pausing. why would you recommend them now? >> my sense f we're going through a choppy volatile period, start buying these names that are much more cyclical in their orientations. i think it is something to start to improve. if washington behaves moderately better, and they seem to be, i

think corporate spending starts to pick many up, which is good for industrials, materials, as well as regional banks and small caps because they benefit from strong u.s. growth. >> melissa, we've heard the pause for a while. is there going to be a signal out there that's going to tell us when this pause is happening? is it just something that starts to happen and grows upon itself? >> i think there will be news that makes people jittery. one, if europe has another incident post the cyprus around april and may, europe rears its ugly head, and people begin to get worried. things start to get worse in europe. i think we're in a moderate growth economic environment. while i think that's going to improve, it means a lot of statistics will be choppier and more volatile, and if we start seeing a string of not strong statistics, that will make people nervous and fall out of it. >> could your pause be the seasonality that we traditionally see in the may time frame in the market? >> i think some of it is

seasonal. it's interesting because bad news comes out in the spring as well. so there's seasonality on the bad news front as well. >> let's get a market flash from josh lipton. a name moving in the after hours session >> lions gate and cbs teaming up, forming a joint venture to run the cable network tvgn and tv guide.com. cbs acquired the 50% stake in the cable network and website from one equity partners, the private equity arm of jp morgan. terms of the deal not disclosed, but reports saying cbs was expected to pay some $100 milli million. cbs and lions gate will enter a 50-50 partnership for the channel and website. >> josh lipton, thanks so much for that. if lions gate opens at these levels, this will be a new record high for the stock which set a new one for today's session. guy, you're a fan, even at these highs. >> i believe you have to be. michael burns has done everything right along the way.

obviously, mr. ikahn went up against him 17 months ago. michael proved to be right. karl proved to be wrong. i don't see any reason to get out of lgf. >> time for pops and drops, big movers of the session. got a pop for tesla. >> ian mosque tweeted out, he's about to put his money where his mouth is and make a big announcement. $40 is a pretty key level. that's where a real breakout happens. i would guess you'll have to wait for the actual announce many. >> for sea gate, up 3%. >> these stocks tend to trade in low multiples, and they tend to move in violent fashion. you saw that today. look over the last six months, we've had 5% to 8% moves over the course of the last several days. if you have profits over the next several days, you might want to be taking profits. >> big drop in molycorp.

>> they were down 43% from q3. inventories on the rise, fast flows on the decline. a lot of problems for moly. reason why there's 52 week lows. i would expect it to go lower. >> best buy down 2%. anthony? >> with richard schultz returning, people are selling because they don't think a deal is going to happen. long term, this is good for the story. little bit of re-invig rags for management here. >> and a pop here for the strawber-rita. anheuser busch is now expanding its selection. the budweiser maker hopes sales of its new drink will be just as sweet as the lime's version, which has become the industry's leading flavored malt beverage.

>> and i'm old son that. >> on straw-ber-ritas. >> i'm sold to you. >> margaritas is my middle name, buddy. >> yeah, baby. >> coming up next, call it a dividend dilemma. the payout number that would put apple in the sweet spot. with investors. the answer isn't as simple as you might think. we're taking a closer look at the numbers. later on, housing data may be on the up and up, but there is one expert who is ready to throw cold water on this turnaround story.

expectations are high that apple will return its cash to shareholders by boosting its dividend. shares are down from an all time high. will a bigger dividend bring investors back? more on apple's dividend dilemma. john? >> i talked to a couple of analysts today about their expectations. i would just say they're muted. some people saying analysts want a 50% hike, even a doubling of the current dividend. keep on talking with her more in line with regine munster at piper jaffrey came down at 32%,

33%. the reason why is twofold. one, two-thirds of apple's cash is overseas. they'll get hit with big tax if apple tries to bring it back for dividends. the other is precedent. if they hike the dividend by 50% this year, people expect another 50% hike next year. you can always increase the dividend by more in the future, but if you slow down the rate of hikes, it looks bad. what if apple does boost it to $3.50 a share, or more than $15 billion a year. it would be like a high quality corporate bond. that yield would be in line with cisco, hp, and microsoft but still less than intel. seems like the street would be satisfied with that, but would it be the kind of catalyst that would cause the stock to run like last year? nobody i talked to thought so, guys. >> i think the key here is that, if you increase the dividend, all of a sudden apple becomes the holding of a dividend fund that needs to see the dividend increases in order to invest in a stock.

we've talked to a lot of dividend fund managers who say we need that dividend increase. >> karen finer, he brought that up as well. if their backs are against the wall and they've got to put it somewhere, i think 3% makes a lot of sense. i don't like the company where you compared cisco and hewlett-packard and microsoft, a lot of companies matured, and you've got that 3% dividend yield, and they're a company that's basically gone nowhere. >> it's not a positive to be add the to the dividend. hasn't worked for intel. talk to an intel shareholder, how he likes his 3% dividend. >> it's a very anti-steve jobs thing to do. because of the return on invested capital. it's still higher than giving out a dividend. so that's the big dilemma here. they're getting pushed by outside investors to do it. i hope that tim cook stays true to the culture of apple, keeps the company going in the right direction.

>> isn't that a nonargument at this point? apple today is a very different apple than when steve jobs is there. it doesn't have that growth trajectory anymore. it doesn't have the mark or the revenue growth. >> at that inflex point, melissa, if they go in that direction, they could end up in the intel-cisco group. >> john, go ahead. >> i'm not so sure apple is that different a company from when steve jobs was there. people act it's all go, go, go, the whole time he was there. between the i mack and the ipod, there were many years. between the ipad and the ipod, there were many years. it's not like they were cranking out some mind blowing product every single year. this could be a natural lull in what they've got going on there. >> the issue with apple is not the dividend being 2% or 3%. it's not what's going to take th this stock back to its prior trend. in six months when the new line

of products and refreshes come out, that has a better chance of bringing the stock up than a dividend of 2% or 3%. >> john, thank you for that report. let's get a market flash. josh lip tton on some of the pharmaceutical names hitting the highses in today's session. >> a sector our own pete najarian remains bullish on, big pharma. pharma stocks at the highest level in more than 11 years. notable gainers, bristol myers and valui vallian up. >> thank you very much, josh lip ton. let's stick with health care. josh brown looking at hca holdings, new all time highs. >> we put a note out on hca. it's a stock we've been very positive on. pulled a trigger on a new buy. essentially the story continues

to improve. and the outlook going out two years, three years, four years on the earnings fund keeps getting better. this is basically an affordable health care act thesis whereby the biggest plague for all the hospital stocks is really all the bad debt expense, people who check in and can't pay for it. the company's on the hook. under obama care, all of that is paid for. politically, whether you like that or not is a different story. look at it from the stock standpoint. they now have the yoke pulled off of their shoulders. hca is unique in that it's in the south, southeast, southwest, where the medical care is the highest in america. so it's going to be the beneficiary of this new trend. >> what you saw happen with the stock today, it had a huge day. $40 was a level it had hit in february. backed off pretty substantially. today it ripped above. there is really no resistance.

there's no level that people are down on this name. that acts as a tail wind once you get above there, which we both did. >> to the point of josh and josh, when i'm looking at pharmaceutical names, you talked about earlier pfizer. that's an absolutely premier name in the space. when you look at the pipe lines and the moves that a lot of these drug companies had to make when they faced the whole patent cliff situation, they did an outstanding job of acquisitions. a lot of these acquisitions either in biotech or generic space, but that's been absolutely something that you look at the pipelines now in the space, and they're in absolutely incredible shape. >> bottom line, just to put a punctuation on this thesis. the demographics are in your favor. not only in the u.s., japan, and europe and developing markets where people continue to age, but emerging markets are adopting more sophisticated health care. once that starts, it ain't going back the other way. that's really what's underpinning the rally across the entire sector. >> coming up next, could one of the year's worst performers be poised to go from trash to treasure. we're talking to the analysts

behind a bold call on peabody energy. right now we're down to just 16 stocks, and our "fast money" madness competition. tonight the traders are tired up and ready to battle it out for four of the biggest names in technology. hello! how sharp is your business security? can it help protect your people and property, while keeping out threats to your operations? it's not working! yes it is.

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welcome back to "fast money." concerned about the obama administration and sequester keeping the stocks in limbo, but some stocks look ready to break out. let's go off the charts and get guy's take on some of these stocks poised to take off. >> thank you for the toss. the first thing we want to look

at is lockheed martin. look at this stock. look at its performance since the obama administration came into power. basically, has moved sideways to slightly higher. nowhere near as well as the overall tape. i do believe people are putting much too much emphasis on the sequester, defense cuts. i think these stocks are all poised. i think people are going to be surprised by how powerful the rise is, specifically lockheed martin. >> walk me through what you're seeing in this chart that makes you think this stock is on the verge. >> look at the dropoff since the obama administration came into power. people look at defense spending, hey, it's going to get cut. we have gandhi in office. that's not the case, folks. the stocks -- lockheed martin does not trade at a big multiple. the powerful rally you're going to see in this stock is ahead of it. you're going to see it on the back of a great tape and a catch-up rally on lmt specifically. and by the way, it's a tremendous dividend you get with lockheed martin. rockwell collins, a little bit

different. this plays to basically the aerospace move. pete is going to talk about boeing after this. >> you don't know what i'm talking about. >> i sort of do. collins has been a stock -- clayton does a great job as ceo we've had on this show before. valuation is fair. dividend not nearly as good as lockheed martin, but a stock that's traded slightly higher to sideways over the past few years. a name that's going to break out. both great companies. both have been hurt because people think spending is not going to be there. i think it will be. >> you take a look at this chart. let's talk about boeing. you take a look at this chart and trading sideways, and finally it lifts along with the entire defense index and not just rockwell collins. why do you think this is a better looking chart than boeing shares, which is really done nicely. >> people speak to boeing. boeing is a much different animal now. a name like collins will -- and i generally don't do this. it will play catch-up. people throw collins in the

defense sector, which they don't necessarily throw boeing there. the move we've seen in boeing, i think you're going to see it in lockheed martin and rockwell collins. >> where do you stand on boeing now that the 787 fiasco is starting to lift? >> i think boeing has upside, but i'd like at a stock like atk, alliance technology. this is another that's defensive, aerospace related. when you take a look at what's it's trading at, single digits, $49. if you take a look back to where you were looking, guy, before the obama administration came into office, this is a $110 stock. there's definitely room to the upside still for this stock. i look at the entire defense space. i think you're right. i think there's a lot of promise in a lot of these different stocks going to the upside. >> 2013 has been a rough year, to put it nicely. for peabody energy, the stock is up more than 21%. raymond james upgrading the stock to an outperform, raising stock prices to $21 a share. let's bring in the man behind

the call, jim, a senior investment strategist at raymond james. not only has btu gone down. it's one of the worst stocks in coal. why do you think it's now getting a boost? is it because of a broader call on coal prices at this point? >> i'd love to make a broader call on coal prices given the drop over the last couple of years. it's more that things stopped getting worse and maybe more on the margin started getting better. i think it's a slow, steady, kind of gradual recovery that the sector sees, and hopefully given the underperformance peabody has had and trending back toward the lows of the last 12 months, we kind of thought the risk/rewards started looking better, if you're looking out 12 months, which is why we've got a 2 rating. >> i'm just curious. you have to search far and wide for a stock with a worse

technical setup. understanding that sometimes fundamentals turn before the share price. wouldn't it be wise to actually get signs that things are turning around rather than trying to catch a bottom. clearly, the stock has no bottom just yet. on a valuation basis, valuations up as a catalyst, wouldn't you prefer to see signs that the street is picking up on those changes at the margin, or is it really worth catching that bottom tick, if, in fact, you think you are right now. >> if you look fundamentally at natural gas and shares this year. prices are higher and more effective. last time this year, we were $2 in mcf. almost twice as much today. that starts to turn around the demand side domestically for coal. on the other side, we've seen a little pickup. set the bench market price up.

that's no longer in free fall. and a stock price back to where it was last july. at that point in time, things were heading in a pretty bad direction. they've actually started heading in the right direction. it's just going to be a slow, steady ramp from here on up. >> part of underpinning this price is a belief that nat gas prices will rise. how long are we going to see the hold before utilities say, you know what, we are going to make the switch because it's not as easy as flipping a switch. >> it's very price sensitive. if you follow the data over the past several months, we saw huge switching last year, and unfortunately we only have data through december thanks to our government, but the data has showed in november and december that started to come back when gas prices picked up. and from the data we can see that continues into this year. it's still on the margin. it's helpful. we're not going back to '07/'08

levels. directionally things look better. this was in the mid-20s just a couple of months ago with things looking not as good as they do today. that's the simple call. >> jim, thanks for your time. jim rollyson of raymond james. guy adami, would you step in here and buy btu? >> peabody's name i've owned. this is a little bit like playing the stock market. that i respect. it's an interesting call. the short answer is the stock action, nothing is indicated to me that it's ready for a turn yet. it will at some point. hasn't happened yet in my opinion. >> you're a chart turner on this stock. >> you don't have to understand technical analysis to understand every time it looks like a buyer shows up, ten sellers come along. here's the thing. it's an interesting spec just because of how horrible it's been. you could make a mean reversion argument, but below 1980, it looks like it goes right to 16, and there's no support. that would be where my stop would be placed, which doesn't

give you a ton of breathing room. >> let's stick with commodities here. bullion cannot catch a break. gold down again, easing debt fears in europe. and a large bet was wagered the pain is just starting. mike koh, where are you? what did you see today? >> here i am in chicago. the may 151 puts in gold were the most options today. if you were buying those, you traded an average price of $1.30. you're making bearish bets below $149.70 by may expiration. it's important to note that's going to test lows in gld that we haven't seen since may of last year. >> mike, thanks for that. options action. if you're a believer in the housing recovery story, there may be reasons to reconsider. coming up next, one expert explains what warning signs are lurking in the shadows, and why improving numbers may not be exactly what they seem to be. [ indistinct shouting ]

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money." hotels a best buy. wind ham worldwide, still the best since march of 2009. other names to watch, marriott and starwood up 11% and 6% respectively. melissa, back to you. >> thank you very much, josh. lipton, guy adami, windham the best performer. >> this is a name these guys can't believe. they believe hotels are dead, nobody's traveling, and they were wrong all along. we had the ceo on the show a couple of weeks ago, and they're doing good. the valuation is cheaper than starwood hotels. again, it's one of those names you bet against it here, do you it at your own peril. >> let's talk housing. will it be a monster spring for housing. home prices rising at the fastest pace since 2006, and new home sales had the fastest consecutive month since 2008. let's take a deeper dive into housing with danny bat.

the ceo of the bat group. she also works as a consultant for the national association of realtors. dany, great to have you with us. >> thank you. nice to be here. >> will we see a hiccup in this recovery? >> i think we will. several factors happening at one time. first of all, buyers looking for bargains. they're worried about interest rates going up, and they want to get into the market while prices are still cheap. sellers don't want to release homes into the market because they think they can still get a higher price, which is decreasing inventory and increasing prices. and we have investors buying like crazy, eating up inventory. >> what is the message that you tell investors in terms of how they can invest to take advantage of this market dynamic? >> they can no longer buy in you will abobulk. we don't see that anymore. pocket listings, mchl ls listings, we're telling them to stay away from the areas with the largest amount of

delinquencies that are going to hit the market the next year or so. >> where do you think we're a year from now? >> a year from now, we're seeing the markets stabilize. phoenix and las vegas, 23% and 15% increases. what sort of job numbers are going to be able to support that? we don't have that now. >> what if the fed keeps the interest rates as benign as they are now? you don't think that's adding some artificial buoyancy to the market? >> i do, and i think investors are artificially increasing the market as they bring up demand, they bring up prices as well, and i think that's a problem. about a year from now, we'll start to see prices stabilize. we're not going to see huge gains. atlanta and dallas have the highe highest ever on record. that's not sustainable. >> wouldn't you agree that it very rarely, at least historically, stops and starts on a dime, and it moves in glacial long term trends, and once a mason trend gets started,

it's not stopped in its tracks by a banks dumping inventory. and wouldn't you agree the shadow inventory argument is kind of stale, and we've been hearing it for five years. >> is she under oath? that was pretty good. >> cross-examination there. >> really good point. 2.3 million homes is a lot. that would increase inventory from 4.2 months to over one year. i think that will have a substantial impact. however, to your point, banks are processing short sales faster than they have ever done, they're more efficient, and they're faster at it, which will prevent those from hitting the market. >> last question, dani. you alluded to this, the notion of the investor stepping in and buying in you will about can. a -- buying in bulk. there's a reason why all the markets are starting up now. it seems like on the other side, they'll all exit at the same time. >> that is a huge concern. talking two to three years out, i have a big concern about that. when all of these homes people are buying now are going to hit the market at the wrong time.

we have flip 2.0 prior to the bubble. >> may be held and rented out as a source of income. isn't that why these funds are starting up? >> and we've had rental prices go to 5% year over year. when that backs off a bit and all of this inventory hits the market at one time and we see this slow, what's the motive for the investor to do that? >> professor shiller is on your side. he commented about this earlier saying it's artificial. we're at sky bridge on the other side. we sort of think the trend is going to stay, and even though i'm not a lawyer like josh, i do think there's going to be an improvement over the next two, three years. it's interesting to hear your thoughts. it's certainly something people have to look at. it's an interesting con tatrari call. i hope you're wrong, dani. >> for my investments, i hope i'm wronged too. >> dani babb. >> coming up next on "mad money," cramer continues to

break down the best in biotech. and jim's got the ceo of a hospital reit that may have the accommodations you're looking for. meantime, coming up next on "fast," from 64 we're down to just 16 stocks in this year's "fast money madness" competition. when we come back, it's an epic showdown to determine who will the final two standing in the tech region. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine. ♪ [ male announcer ] help brazil reduce its overall reliance on foreign imports

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time for "fast money" madness. it started out with 64 stocks. now we're down to 16. let's look at the results from the offline voting based on the twitter votes. here are the results from the health and home region. an upset for number one seed amazon which is ousted by number five seed disney. number 11 seed ebay beating out number 7 seed walmart. let's get out to the tech region because that's where the battles are brewing. our first matchup is between number 1 seed google and number 4 seed apple. let's turn this to the traders. anthony, i'm going to start with you because i think this is a debate going on at a lot of hedge funds across the country.

>> i did mention that google is rising in the hedge fund ownership table, apple being lowered. i think there are really good reasons for that. google is expanding itself on the innovation line. the new cell phone will be amaying. they've got a ton of cash to defending themselves. i think google is the next apple where apple was the next microsoft. if you follow that, you'll stay long google. >> google is the next apple where apple was the next microsoft. >> i agree with anthony that's what's happened. google has the momentum here. but for a contest of this nature, you probably want to give yourself a little runway. google is at all time highs. apple is so far from its highs. i think apple has a really good shot to have some momentum. >> if you look at where apple was last time and where it ended the year, this stuff is also trading momentum. >> that's last year. so i'm saying this year. >> that's my point. google is at an all time high

and will trend higher where i believe that apple, unless they come up with something sexy on the innovation side, will be i sideways stock. >> may be. >> okay. >> what, we're talking? >> independently, google or apple? >> it's actually very easy for me. i disagree with what you're saying, anthony. i think what's happening now is apple, the story from last fall is the story of a stock that had a lot of late buyers who came into the stock, and it's a second half of 2013 story. the stock sold off from a lot of the folks who thought it was going to be easy money who bought it between $600 and $700. it sold off. as you look into the second half of this year, that's when some of the innovative products, to the point earlier by josh, that's when it kicks in. i think google will find itself to your point earlier, anthony, but opposite, if you go in this direction instead of that one. google at this 800 level at some point is going to stumble. it's going to fall. when it pulls back, everybody is going to be whining about

where's my dividend? >> pete has the common sense view of this thing, and it's a very interesting view. this is "fast money madness" for a reason. my prediction is mad, and hopefully you guys will hold me to it at the end of the year. >> are you going to repeat? >> i don't believe in boring you guys. >> come on, cough it up. apple or google? >> google. >> which creates a tie, which i love ties, for a number of different reasons. >> you know why? we all go to twitter to find out who you all voted for. you all voted for google. the winner advancing to the next round is, in fact, google. >> smart audience. that fast audience out there. >> it's only smart when it agrees with you. >> precisely. >> onto our second debate in the technology region. this time between number 1 seed ibm and number 6 seed microsoft. once again to our traders. >> we've loved ibm for a long time. it's been a "fast money" fave.

but ibm has pits and -- >> fits and starts. >> fits and starts. thank you for helping me out. my sense is we're going to have another one. whereas mr. softee, slow and steady, doesn't win any races. however, in this case, i think it will. this goes to anthony's way of thinking. ibm may have a pullback. mr. softee may be sideways. the i like mr. softee for the reasons that don't make sense, microsoft. >> microsoft is going to go nowhere. i own it. i only own it for the yield, and i can sell calls against it. i think ibm takes them out early. >> i would go microsoft. again, getting back to that argument, it's got more room to do something. ibm has been a huge winner. microsoft, you never know what's going to happen in terms of the product cycle. >> anthony? >> anthony and i are teaming up. ibm. i just think this thing is the

best management team out there, and we'll see it trade up by the end of the year. >> you know what this means? we have another tie. >> you weigh in. >> i don't weigh in on anything. we have to go to twitter. twitter vote will be the deciding vote. you guys out there chose ibm. >> our "fast money" viewers are not that bright. it's really unbelievable. >> all right. so bim prevails over mr. softee. to see the full bracket of all the stocks and play in the "fast money" competition, log on to fastmoney@cnbc.com. get in on the game by tweeting us and telling us which stocks you're picking by using the #fastmoneymadness. and guy, why will there never be any ties? >> because the votes, no matter how massive in number, only count for one person. would take too much time if we tried to cull all -- >> call or cull? >> cull. >> cnbc's jane tells us what's

coming up from the west coast. >> i just saw that i was wrong about my lindsay lohan call again. >> totally wrong. >> really didn't do that well. up next, who's more powerful, cal pers or wall street? steve jie cohen, a 17-year-old multimillionaire for his mother? ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

the one and only jane wells. >> bankruptcy trial in the foreclosure capital of america may really be about public pension funds versus wall street. a judge is hearing arguments over whether stock qualifies for chapter 9. cal-pers argues it is not a creditor and is therefore exempt from payment cuts through bankruptcy. bond holders disagree. they want the pain shared. and now the city of pacific grove has hired a bankruptcy attorney to explore reducing its calpers payments. back to you. >> anthony, muni bonds, how do you feel about them? >> i think that the negative push on muni bonds are now over. this is a legal case. the only thing i learned in law

school, melissa, is don't get into litigation or lawsuits. ultimately, this will be a coin toss. if you're asking me long-term trends on municipal bonds, i think people are going to be very happy in their positions. >> i raised a couple of 17-year-olds. not always fun. the most effective way to punish them are going to take away the car keys. how are nick d'alosio's parents going to punish him now that he can afford his own car? nick's no fool. melissa says he got most of the $30 million in cash. >> cash, wow. guy adami. >> hi there. >> you like yahoo. you liked yahoo. it was your top trade the other day. >> monster. a couple of things strike me interesting. a, one, yahoo is a monster. two, how can jane, who is 32, have raised 17-year-old boys? >> i was 15. >> i was wondering the same thing. >> sorry, jane. >> finally, steve wynn committed

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i don't think she's close to being done. >> anthony, break the trend. >> mastercard here. look for a share repurchase and an increase in the dividend. this stock's got a lot